The US to copy our Glorious Leaders And Emulate Our Tractor Production
Obama buries Reaganomics under $3.6 trillion mountain - Times Online
The scale of Obama’s ambition has only just begun to sink in. If his budget for 2010 passes through Congress largely unscathed, it will represent the “the biggest redistribution of income from the wealthy to the middle class and poor this nation has seen in more than 40 years”, said Robert Reich, a former secretary of labour under Bill Clinton who has been advising Obama.
Reich told The Sunday Times: “It is the boldest budget we have seen since the Reagan administration, and drives a nail in the coffin of Reaganomics. We can basically say goodbye to the philosophy espoused by Ronald Reagan and Margaret Thatcher.”
Obama’s $3.6 trillion budget proposal includes $770 billion in tax cuts over 10 years for the “middle class”, America’s term for everyone from the moderately well-off to the working poor; $150 billion for funding “green” energy sources, and $634 billion towards the introduction of universal healthcare.
The numbers are almost beyond the power of imagination, but it is clear somebody will have to pick up the bill. A hefty $1 trillion or so will come from new taxes on the rich, paid for by families earning over $250,000 a year, increases in capital gains tax and limits on America’s generous tax deductions, including those for charitable contributions.
An extra $80 billion a year is predicted to come from auctioning off carbon permits under yet-to-be determined cap-and-trade legislation — if and when it actually happens.
None of this will be nearly enough to cover the gaping hole in America’s public finances. Even if the economy recovers at a clip over the next 10 years, America will still be running a deficit of 3% of GDP by 2019. The president’s daughters Malia, 10, and Sasha, 7, along with other members of their generation, are likely to emerge into adulthood saddled with debt.
The politics of “tax and spend” — or rather taxing the rich to spend on everyone else — is not only back in vogue, but has become an essential component of America’s economic recovery plan. Obama has seized on the “once in a generation” crisis to fulfil his campaign pledges
And it has all worked so well over here...Good Luck!